Rise in Government Infrastructure, Growing Cold Transportation, and Increasing Tech Penetration is Facilitating Growth in Road Freight Industry in Philippines: Ken Research

Increased Government Spending: The government has targeted to increase infrastructure spending to more than 5% of the country’s GDP to reduce congestion and improving road infrastructure in the metropolis. Various efforts include Bonifacio Global City-Ortigas Business Centre link road, Strong Republic Nautical Highway, the introduction of a paperless system at Port of Manila, Public-Private Partnerships deals funded by Big Companies such as San Miguel Corporation.

High Seasonal Demand Variation: The demand for trucking in the Philippines is the highest during “Sond” Months (Sept, Oct, Nov, and Dec) where the occupancy of trucks is increased by 20-30% with price variation of 30-40% in comparison to normal freight rates due to festivals such as Christmas and New a year and additional employee bonus along with benefits given to the employees at the end of the year.

Change in Government Regulations: The government is constantly changing the regulations associated with the trucking industry such as the Restriction of trucks above the age of 15 years to avoid carbon emissions in the country. The government has also imposed Truck ban from 6:00 a.m. – 10:00 a.m. and 5:00 p.m. – 10:00 p.m. every day except Sundays and Holidays on certain routes applicable on heavy trucks to avoid congestion on roads

Inter-Island Connectivity by RORO: The Inter island movement between Visayas, Luzon, and Mindanao has improved due to cheaper and faster connectivity using the Ro-Ro Facility which allows vehicles to directly drive onto and off Ro-Ro ferries without loading/offloading of cargo. The travel time between Mindanao and Luzon has been reduced by 12 hours using Ro-Ro due to reduced time in loading/ unloading cargo and faster availability of ferries, which has also lowered the freight cost by almost 30%.

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